The Choice of European Settlement Currency and Its Influence on Risk Management of Enterprise in China

Abstract

This paper summarizes the status of European countries choosing settlement currency in the context of RMB internationalization, finding that although European countries still use the US dollar and the Euro as the main settlement currency, the share of using RMB as the settlement currency has been increasing in recent years. At the same time, the article explores the main reasons why European countries choose RMB settlement, indicating that the main factors affecting the settlement of RMB in European countries are the promotion of China's domestic policy, the internationalization of RMB and the reduction of dependence on the US dollar. Finally, this paper analyzes the impact of European countries choosing different settlement currencies on enterprise risk management in China.